Time for a special audit of the arena

An open letter to Ohio Auditor Mary Taylor:

Last May, your office sent out a press release announcing that you and the Ohio General Assembly had joined forces to increase financial accountability of the state’s charter schools. While such an initiative has been a long time coming, it was the concluding paragraph of the release that struck a chord. It reads as follows:

“The Ohio Auditor of State’s Office is one of the largest accounting offices in the nation. The office strives to ensure that all public funds are spent legally and appropriately and works aggressively to root out fraud, waste and abuse in public spending. Taylor encourages anyone suspecting fraud or misspending of public dollars to contact her office ...”

Using that standard, a $45 million project funded entirely with taxpayer funds would certainly qualify for a special audit. Yes, the Chevrolet Centre — “the arena” — in downtown Youngstown warrants an objective, professional evaluation to determine if the money was spent appropriately. Please note the use of the word appropriately. No one is suggesting fraud or misspending — at least not yet.

There are several reasons for the auditor of state to conduct a special audit of the center, foremost of which is that after two years under the management of Global Entertainment Corp., a new entity is being sought by the city of Youngstown, which owns the center, to take over the operation.

The transition period opens the door for the state to ensure that the books are in order before the new company is brought in.

Federal grant

The second reason a special audit is justified has to do with how the project was funded. A $26.8 million federal grant secured by former Congressman James A. Traficant Jr. was meant to attract private investment, but it didn’t. Instead, city and state dollars were used to supplement the grant. In fact, Youngstown government has borrowed $12 million, and must now come up with $750,000 annually for the interest alone. It’s a debt Youngstown could ill-afford to have taken on. But short-sighted decision-making on the part of city government officials has placed great demands on the public treasury. The state has kicked in $2.5 million, which thus gives you, Madam Auditor, the right to order a review of the books.

The third reason an independent audit is demanded has to do with the project itself. Ever since it was launched, and after construction was completed, the $45 million price tag has been the topic of quiet discussion among local architects. None will publicly suggest that for $45 million the city could have had the Taj Mahal of sports/entertainmnt arenas, but that’s the gist of their private comments.

As the state’s fiscal watchdog, you could address the issue of the price tag by asking the American Institute of Architects to appoint a review board. One of the issues that does give some credence to the contention that the city may have overpaid is the fact that the design of the arena closely resembles the one in Hidalgo, Texas, that Global Entertainment managed.

It is not the first time this writer has sought an independent review of the Chevrolet Centre. In 2004, the federal government was urged to investigate the purchase of the land on which it sits, and the General Accounting Office was asked to review the contracts between the city of Youngstown and the contractor and subcontractors.

Regretfully, because it was a presidential election year and Ohio was a key state in President Bush’s re-election bid, the call for the federal probes fell on deaf ears.

Commitment to taxpayers

As the only Republican holding a nonjudicial statewide office, you Ms. Taylor, have the chance to prove your commitment to the taxpayers of Ohio, a commitment you expressed not too long ago during a meeting with Vindicator writers.

Your no-nonsense approach to what has been a long overdue review of charter school expenditures shows that you will not permit politics to govern how you perform your duties. After all, charter schools are the creation of the Republican majority in the General Assembly, with the support of former Republican Gov. Bob Taft.

Your review of charter school spending is even more commendable given that at least one major Republican bigwig in Ohio owns many of the schools.

A special audit of the the Chevrolet Centre will not only win you support among taxpayers in the predominantly Democratic Mahoning Valley who believe that there should be an accounting of how the $45 million was spent, but will silence the naysayers.